The Economy: Operation Reassurance

Now that Lyndon Johnson's wage-price guideposts lie splintered for all to see, figuring out what to do next to check inflation is giving the Administration one of its biggest headaches. Two factors combined as nothing else had to dramatize the strength of inflationary pressures: the failure to settle the air lines strike quickly despite a generous wage offer, and the President's inability to head off steel price increases. Both the business community and the general public have begun to show more than minimal worry. Although mild inflation normally helps the stock market, one reason for the market's lurching descent...